According to CNN Indonesia, environmental activists blame the palm oil industry for rampant clearing of Southeast Asian rainforests, though Indonesia and Malaysia have created sustainability certification standards mandatory for all plantations.
Malaysian Deputy Prime Minister and Commodities Minister Fadillah Yusof said Malaysia and Indonesia will discuss the law, which bans sale of palm oil and other commodities linked to deforestation unless importers can show that production of their specific goods has not damaged forests.
Talking to media on January 12, Fadillah urged the members of the Council of Palm Oil Producing Countries (CPOPC) to work together against the new law and to combat baseless allegations made by the EU and US about the sustainability of palm oil.
In their talks on January 9, Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim agreed to fight discrimination against palm oil and strengthen cooperation through CPOPC.
In 2018, an EU renewable-energy directive required the phasing out of palm-based transportation fuels by 2030 because of their perceived link to deforestation.
According to Malaysian Palm Oil Board data, the EU is the world's third-largest palm oil consumer. It accounts for 9.4% of palm oil exports from Malaysia./.